CHICAGO, IL - OC Ventures, a Chicago-based leader in student housing real estate investment, announced the acquisition of two student housing properties in Rochester, NY and Wilmington, NC. These acquisitions mark the beginning of an aggressive growth strategy in the student housing sector for OC Ventures. The investment firm is the second-largest housing owner and operator in New York and has now acquired 3,700 beds in the last two years.
“Student housing is one of the most attractive real estate investments today,” says Steve Zhang, Chief Investment Officer at OC Ventures. “It’s one of the few real estate investments that are relatively recession-proof, provides stable cash flows, and offers healthy rent growth as college enrollment continues to increase. We offer investors the opportunity to tap into lucrative student housing investments.”
In its latest deal, OC Ventures acquired the Hill at RIT and the Lighthouse at UNCW. The Hill at Rochester, is a 118-unit, 362-bed student community near the Rochester Institute of Technology (“RIT”) in New York. The Lighthouse is a 124-unit, 348-bed student community pedestrian to the UNC Wilmington in North Carolina.
“The acquisition of The Hill at RIT and Lighthouse at UNCW are both strategically important to us,” Zhang explains. “For The Hill, RIT is the only sizable engineering-focused private University in Upstate New York. We believe enrollment will keep growing, thus creating a favorable demand and supply dynamic for student housing owners. Additionally, The Hill represents our fourth acquisitions in Upstate New York with the same capital partner. The four properties make an attractive homogeneous portfolio, which also solidifies our position as the second-largest student housing owner in Upstate New York.”
“For Lighthouse, we are excited to acquire a true pedestrian asset to be our third acquisition in the UNC system,” Zhang continues. “Our business plan includes upgrading in-unit furniture, adding a package room, and increasing the overall functionality of the clubhouse."
Both properties feature spacious floor plans with equal bed-to-bath parity. Each luxury unit is fully furnished and offers modern kitchens with granite counters, high-speed Wi-Fi, wood-style flooring, and in-unit washer and dryer. Community amenities include a fitness center, study lounges, recreation rooms, pet parks, outdoor swimming pools, and hot tubs, grilling stations, and hammock gardens.
Varsity Campus, a full-service student housing management firm, will manage the Hill at RIT and the Lighthouse at UNCW. With six student communities in New York, Varsity Campus is the largest student housing manager in New York by market share.
“Varsity Campus is excited to have the Hill and the Lighthouse join our managed portfolio,” said Jerry Wojenski, CEO of Varsity Campus. “By applying our operations and leasing systems, we plan on pushing rent growth and reducing operating expenses to improve the yield from these investments. We have a proven track record of executing our client’s investment goals.”
OC Ventures’ growth strategy includes a robust pipeline of acquisitions planned in 2020. The firm is actively investing in college markets with strong enrollment growth as well as opportunities with a value-add component. OC is on track to become a top 25 owner and operator in student housing by the end of the year.
About OC Ventures: OC Ventures is a Chicago-based real estate investment firm specializing in student housing. The company is active nationally, focused on opportunistic investments. For additional information, contact Steve Zhang at zhangshaofan@oc-ventures.com.
About Varsity Campus: Varsity Campus is a Chicago-based student housing management firm. Varsity manages over 5,000 beds nationally. For additional information, contact Colton Price at cprice@varsitycampus.com.